El-Erian: Jobs Report Points to a Healing Labor Market

The US jobs report on Friday (VIEW LINK) showed nonfarm payroll employment increased by 280,000 in May with the unemployment rate essentially unchanged at 5.5 percent. Job gains occurred in professional and business services, leisure and hospitality, and health care. The report was seen as good news for the economy and increased the case for The Fed to raise rates later this year. Mohamed El-Erian does an excellent job explaining the divergent reaction between bond and equity markets. He says the response is 'textbook' with bond markets clearly seeing rates higher while equities remain torn between solid economic fundamentals and the prospect of rates rising sooner than they would like. The interview is only 2 mins long but provide a very clear summation of the jobs report and the market reaction: